Debenhams Group said today it will push ahead with a new executive pay scheme worth up to £222m without seeking approval from shareholders.
The British online fashion retailer, rebranded from Boohoo in March, said that one of the reasons it was not asking for shareholder approval was because a "major competitor" investor, which it did not name, had tried to block other resolutions.
Debenhams has been locked in a long-running tussle with top shareholder Frasers Group, majority-owned by British retail tycoon Mike Ashley, which unsuccessfully attempted to block its rebrand and oust its co-founder.
Frasers did not immediately respond to an emailed request for comment.
Under the new incentive scheme, CEO Dan Finley could earn up to £148.1m and CFO Phil Ellis up to £14.8m if Debenhams' share price hits £3 over the next five years. The stock closed at 12 pence yesterday.
Debenhams' shares were up 17.2% at 13.6 pence this morning.
After a period of leadership changes, strategic shifts, competitive pressures and the dispute with Frasers, Debenhams launched an operational review this year.
Debenhams also said it expects annual adjusted core profit to be ahead of last year, as it advances its plan to cut costs and revive demand.
"The turnaround plan is coming together at pace – very rarely seen on the public markets," Panmure Liberum analysts said in a note.
The Debenhams review targets a capital-light marketplace rollout across all brands, warehouse closures and job cuts, while exploring a sale of PLT and long-term options for some of its British and U.S. distribution sites.
Debenhams recorded £41.6m in adjusted core profit last year.
